We discuss how economic theory has analyzed the effects of being GLBT (Gay, Lesbian, Bisexual or Transgender). We find that economics has focused on finding earnings differentials between GLBT and heterosexuals. The issue is, however, whether the standard analytical techniques available in economics, can be applied to sexual minorities. A number of shortcomings in recent econometric studies have shown that a more comprehensive approach is required. We conclude by listing a number of elements that this new approach should feature.